THE CRUISE

INDUSTRY
 INTRODUCTION
• The cruise industry is the fastest growing segment of the leisure travel
market. It has experienced tremendous growth since 1970 at more than
100%B, According to Cruise Line International Association (CLIA)-`

• CLIA a non-profit association representing 24 cruise lines. This growth is

expected to continue at an average rate of 7.9% for the next five years.

• For the year 2002, cruise passengers reached 7 million. Because of the
increase in the number of passengers. Cruise lines added more ships to their
fleet.

• In 2002, 12 new ships were introduced to accommodate more than 20,000

additional passengers.
• In 2003, 14 more ships entered the worldwide fleet to accommodate
30,000 passengers.

• By 2006, the number of passengers that can be accommodated will

exceed 260,000

• The cruise industry is both international and multinational. Cruise

passengers come from all over the world. Seventy-five percent of the
total world passengers come from North America

• The cruise industry contributes indirectly to the ports of call and ports
of embarkation. It gives an added boost to tourism through money
spent for pre-cruise and post-cruise stays, sightseeing, restaurants,
retail shops, and other purchase made by cruise passengers.
 History of the Cruise Industry
• One of the pioneers in the cruise industry was Albert Ballin of the
Hamburg-Amerika Line. He coordinated the first recorded cruise in 1891

• On the Augusta with 241 passengers. Later, sailing on ships became more
refined. Originally, sailing vessels were used primarily to transport
travelers from one place to another. As economic conditions changed, rich
individuals began to take cruises or round trip sailing in which passengers
returned to their point of origin.

• In 1906, the Cunard Company entered the cruise industry on a large scale.
Their flagship was the Mauretina, which was considered as the “gem of
the sea”
• Another important event in the cruise industry was the sinking of the titanic in
1912.

• World War I caused a decline in the cruise industry. After World War I business
improved when American Express chartered the Laconia for the first cruise
around the world.

• The outbreak of Word War II, The cruise industry again declined. After the end
of World War II, cruise ships started sailing between Europe and the first jet
crossed the Atlantic in six hours.

• In the early 80’s, the cruise industry gained popularity due to the television
series “Love Boat” publicized modern-day cruising and created awareness of
cruise ship vacations to the whole world.
 Cruise Line International Association
• The Cruise line international association (clia)was founded in 1975
• at present, it represents around 97% of the world's deluxe cruise
operators and accounts for 24 cruise lines serving, North America.
• Main purpose is to develop marketing strategies and help in the training
of professionals involved in the cruise industry.
• Although it does not have any regulatory powers, it serves as a powerful
lobbying group because of the research data it gathers.
• Has an informative website, which gives current informations about the
cruise industry and its members.
• It also provides its members with 2 manuals and a planning guide which
serve as a valuable tools for cruise professionals
 Anatomy of Cruise Ship
• There are 6 important terms that are necessary to understand the
anatomy of a ship,namely: bow, stern, aft, port, starboard, and the
midship.
- these terms refer to the front, extreme rear of the ship, respectively.
most ships have a "lido deck", a deck which offers informal activities such
as indoor and outdoor buffets.
• Ship is classified by its "gross registered tonnage" GRT, which measures
the volume of public spaces in a ship.
- larger the GRT, the greater the number of passengers a ship can carry.
- space ratio is essential in considering a ship size.
- larger the space ratio, the larger the space a passenger can room while
on the ship without interacting with other passengers.
Ship has decks with specific names such as:

a. bridge - The bridge is the place on the ship where the captain
and his crew manage the direction and speed of the ship

b. boat - a ship's upper deck on which lifeboats are stored

c. sun - a raised, open area, as a roof, terrace, or ship's deck,

that is exposed to the sun.
d. promenade - found on several types of passenger ships and
riverboats. It usually extends from bow to stern, on both sides,
and includes areas open to the outside, resulting in a continuous
outside walkway.

e. sports deck - where sport activities located

there are facilities on each decks such as:

dining rooms, lounges, bars, theatre, meeting rooms, shops, and
various recreational areas.
 Cruise Ship Serve 4 Market Namely
1. the luxury/upscale cruise lines, segment with yacht-like upscale cruises accounts
for approximately 10% of the total industry fleet and carries less than 10% of the
passengers
2. the mass market cruise lines, segment which is the most dominant segmet of the
industry; it operates medium to large ships and carries approximately 75% of the
industry's passengers
3. niche/specialty market cruise lines, which concentrates on specialized, exotic, and
adventurous itineraries
4. bargain basement cruise line, which use older ships and therefore, are able, to
offer cruises at a lower price.
WHY DO PEOP
CRUISE?
1. A Cruise pampers the client
– a cruise provides services that are rare in everyday life, but are
common on a cruise such as lounging on deck, breakfast in bed,
soaking in a hot tub, afternoon tea, champagne, and caviar.

2. A cruise provides a stress-free vacation

– On a cruise, a person packs and unpacks only once. He does
not look for a hotel or a place to eat. The cruise experience
lessens his worries and maximizes his vacation time

3. A cruise is a new experienced

– many people have never been on a cruise, so they would like to
experience adventure on a cruise.
4. A cruise is a learning experience
– on many cruises, expert lecturers on board give enrichment
presentations that help the passengers understand the history and
culture of the places that they visit. Some specialty cruise lines
make passenger learning their major goal.

5. A cruise facilities shopping

– every port provides passengers its own shopping
opportunities which are often duty-free. The ship itself has a
wide selection of boutiques where the passengers can make
their purchases

6. Cruises offer a variety of events, activities,

and meals
– it is impossible to be bored on a cruise because of the various
events and activities that you can choose from such as swimming,
jogging, watching a show, shopping, dining indoors or out.
Exploring a port or staying onboard, sunbathing, and reading by the
pool.
7. A cruise develops friendship
– a cruise provides opportunities to meet new people and to make
new friends. These friendships may last even after the cruise.

8. A cruise is a romantic experience

– On a cruise, a person packs and unpacks only once. He does
not look for a hotel or a place to eat. The cruise experience
lessens his worries and maximizes his vacation time

9.A cruise is a great way to celebrate a

special event
– couples celebrating their wedding anniversary, honeymooners,
and birthday celebrants find the cruise an excellent venue for their
celebration.
10. A cruise satisfies practically everyone
– a cruise satisfies almost everybody families, old people,
young people, lovers of knowledge, lovers of sports, church
groups, singles, and couples.
 Cruise Clients
Typical cruise clients:

1. 27% of cruisers are below 40 years of age; 42% are between 40

and 59 and 31% are over 60. This disproves the common belief
that “cruise are only for old people”

2. Approximately 40% of people on board take their first cruise

3. 3 out of every 4 cruisers are married
4. Cruises have more household income than non-cruisers
5. 5.10% of cruisers bring their child or children along.
 Typical Cruise Clients

• 27% of cruisers are below 40 years of

age; 42% are between 40 and 59 and
31% are over 60. This disproves the
common belief that “cruise are only for
old people”
 Typical Cruise Clients

• Approximately 40% of people on

board take their first cruise
 Typical Cruise Clients

• 3 out of every 4 cruisers are married

 Typical Cruise Clients

• Cruises have more household

income than non-cruisers
 Typical Cruise Clients

• 10% of cruisers bring their

child or children along.
On a short cruise, passengers have the following characteristics:
1.Younger
2. Have less disposable income
3. Have less education
4. Usually work full-time
5. Interested in mass-market destinations such as the Caribbean
6. New in cruising
On a larger cruise, passengers have the following characteristics
1. Older
2. Have more disposable income
3. More educated
4. Usually retired or semi-retired
5. More interested in exotic destinations
6. Have already experienced cruising
On a short cruise, passengers have the
following characteristics:

1.Younger
2. Have less disposable income
3. Have less education
4. Usually work full-time
5. Interested in mass-market destinations
such as the Caribbean
6. New in cruising
On a larger cruise, passengers have
the following characteristics:

1. Older
2. Have more disposable income
3. More educated
4. Usually retired or semi-retired
5. More interested in exotic
destinations
6. Have already experienced cruising
Organizational Structure
✓ Organizational structure of cruise ship varies
according to the size of the ship.

Three Main Operation Department

1. Hotel Department – responsible for passengers

activities, rooms, food, beverage, entertainment
and other personal services offered.
2. Fleet Department – responsible for the
maintenance off the ship and includes the ship’s
officers, radio operators, and engine and deck
crew.
3. Sanitation Department – responsible for the
health and safety of the passengers and crew.
A. REGISTRATION – Registering a ship is a long process that involves many people. This
process is necessary to ensure the safety of the passengers, crew, and inhabitants of
countries where the ships are registered.

B. Safety and Security – the cruise industry’s highest priority is the security and safety of
its passengers and crew members. Cruising is considered the safest way to travel

C. Hotel Division – in the hotel division, large passenger ships carry one crew member for
every two passengers. Some carry more. Crew members include accountants, bakers,
barbers, beauticians, bartenders, butchers, casino managers, doctors, nurses,
enternainers, launderers, lecturers, meeting planners, ministers, priest, rabbis,
musicians, port lecturers, printers, pursers, recreation directors, retail store clerks, large
staff of stewards and stewardess.

D. HEALTH – the Centers for Disease Control (CDC) makes unannounced inspections of
cruise ship that dock at ports and grades them on water, food preparation and holding,
potential contamination of food, general cleanliness, storage and repair. a score of 100
is the highest possible score. 86 or higher is considered satisfactory .
Destinations
✓ The Caribbean and Alaska are the most popular destinations but cruises call on more than 1800 ports.
these destination vary from well known ports to unusual ports depending on the type pf cruise.
The ff are the cruise ships destinations
1. Alaska;
2. Antarctica;
3. Africa; 12. Mexico;
4. Australia and new Zealand; 13. South America;
5. Bermuda; 14. transatlantic
6. the far east and the orient;
7. the Bahamas and the Caribbean;
8. Canada, new England, and the us coast;
9. central America and panama canal;
10. Hawaii, Polynesia, Tahiti, and t he south pacific;
11. northern Europe and the Mediterranean;
 Cruise Areas
• Cruising is divided into ocean, sea and island cruises
including working ships, specialty and expedition
cruises, river and inland sea cruises, as well as ferries
and freighters for those with special needs.
• Cruise contracts have disclaimers that give the cruise
line right to change itineraries especially in case of bad
weather.
Cruise Product

• Ship Design evolved from the days of restricted entrances

and lower-deck pools to palatial atrium, lobbies and pools on
top decks to catch the sun.
Port Development
• Cruise ships call at ports that are near good
sight0seeing areas or offer active sports
opportunities.
• Shore excursions improve along with port
development.
Changes on Board

• THERE ARE MANY CHANGES ON BOARD like:

✓De luxe suits on new ships are very large and have plenty
of amenities
✓Public rooms have decorative styles such as three-tiered
dining room, food courts, spa, restaurants, ice cream
parlor and retail stores.
✓There are also Broadway and Las Vegas style shows
 Ship Revenues
• Management depends on shipboard revenues to make a
profit.

• Some cruise lines get more than 30% of passage money

from onboard charges.

• Attractions are runs as concession with the cruise lines

getting a percentage of sale
 Modern Pattern of Cruise Ships
- Most cruise ships reduce the distance they travel by sailing
slowly, cutting out ports, calling at places close together or
staying in a geographical area, and flying passengers back and
forth via nearby airport. This is the pattern of the cruise liner and
the reason behind the fly-cruise concept.
 The Choice Of A Cruise Ship
The following are the factors that influence passengers in their choice of a cruise ship:

1. Destination 6. Seaworthiness
2. Quality of service 7. Cuisine
3. Beauty of the ship 8. Captain's reputation
4. Comfort 9. Ship's age
5. Speed 10. National affiliation
Sea Traditions
The modern ships have no class distinction except the price. In the romance
languages, the word for the ship is always in the feminine gender. Thus, for
centuries, seafarers have used the feminine pronoun to refer to their ships.

• There is a distinction between a ship, a boat and a liner.

• Shipping companies operated lines of ships that crossed the ocean on a regular
schedule. The ships that formed the "line" across the ocean became known as
"liners".

• Shipbuilders launch a ship when it is 70% to 90% completed. Before a ship is

launched, it is traditionally christened, by a woman by breaking a bottle of
champagne over the prow. This custom originated in ancient times when sailor
dedicated their boats to the gods for protection. Originally, the sponsors of ships
were men.
Sea Traditions
• During the nineteenth century, the British admiralty began having ladies of the
court perform the ceremony. After the launching, a tug pulls the hull to an out
fitting pier where workers complete the superstructure and add the interior
furnishings.

• A flagship is the vessel that carries the commander or flag officer of a fleet. In
commercial operations, it is the premiere ship in the company's fleet.
 TRAVELING BY
BOAT AND FERRY
IN THE
PHILIPPINES
FOUR(4) TYPES OF BOAT AND FERRY TRANSPORT IN THE
PHILIPPINES

• PASSENGER LINERS: Large ships carry thousands of passengers

as well as cars.

• RORO: Roll On, Roll Off ferries for cars.

FOUR(4) TYPES OF BOAT AND FERRY TRANSPORT IN THE
PHILIPPINES

• FAST CRAFT: Fast means of transport between big islands usually in the

form of modern, air conditioned, catamaran.

• BANGKAS: Small boats for hopping between islands situated in close

proximity to one another. Considered as the taxis of the sea, motorized

bangkas are called “pumpboats”.

MAIN FERRY COMPANIES OPERATING IN THE PHILIPPINES

• 2GO Travel
• Supercat 2GO
• El Greco
• Super Shuttle Roro
• Montenegro

• Oceanjet • Trans-Asian Shipping lines

MANILA FERRY ROUTES

• Bacolod City to Manila

• Cagayan De Oro to Manila

• Cebu City to Manila

• Manila to Bacolod City

MANILA FERRY ROUTES

• Manila to Cagayan De Oro

• Manila to Cebu City

• Manila to Tagbilaran City

• Manila to Zamboanga City

MANILA FERRY ROUTES

• Tagbilaran City to Manila

• Zamboanga City to Manila

 Life on Board the Ship
• A cruise is usually a circular journey, not a one-way trip. The port
of embarkation is the city where a cruise begins.

• A Port of Call is a city which is on the ship’s itinerary. The port of

debarkation is the ship’s final port, which is usually the city
where the cruise started.
A. Embarkation
• Passengers can embark approximately four hours
before sailing. Upon arrival at the pier, luggage is
collected by porters and brought to the cabin
after a few hours or sometimes even after the
ship departs, to avoid lost suitcases or late
deliveries, passengers must use the color-coded
luggage tags provides by the cruise lines.
Passengers then move on to check in at the dock.
B. Dining Room Assignments
- Dinning room assignment are verified at portside check-
in or by a card placed in the cabin or after boarding by the
maître d’ hotel. Some ships, particularly the small ones,
have open-seating procedures without pre-assigned
tables.
C. Cashless Society
• Cruise ships operate as cashless societies.
During the boarding process, passengers
register credit cards to open a shipboard
account. Those without credit cards must make
a cash deposit.
• Passengers establish credit and charge on
board purchases and settle their accounts at
the end of the cruises.
D. Security Check
- Passengers can go through a security check as they
board the ship. Security at sea is like security at an
airport. X-ray machines are found on the pier or at the
head of the gangway
E. The Gangway
- The gangway separates the ship from the shore.
North American ports are designed to enable the
passengers to walk comfortably to the ship for
embarkation.
F. Photographs
• tradition of modern cruising is the picture
taken by a photographer of the passsengers
as they board the ship.
• a formal portrait is taken on formal nights.
Developed pictures are posted in the photo
gallery for viewing by t he passengers.
G. Accommodations
• cabin amenities on upscale ships include down pillows, tv's with vcd and dvd
players, minibars, stocked with preferred brand of beverages, large closets and
terrycloth robes, and slippers.
• mass market ships offer these amenities only in thier suites.
• cabin's cost depends on its size and location.
• the largest suites have separate sitting and sleeping rooms.
• the master bath in de-luxe suite may have jacuzzi.
• a private butler may attend the suite's occpants. Cabins with private balconies are
becoming popular.
• an outside cabin has a window or porthole.
• inside cabin on the lower decks are the smallest and the least expensive on a ship.
they don't have natural light. most bathrooms have showers only but no tubs.
• the cabin that sell first are the most expensive.
H. Passenger List
• in the past, passengers list was slipped
under every door before the ship left
port.
• it is a must reading for those
whotraveled in the hope of meeting
billionaires and royals.
• only the most upscale ships provide
passengers lists.
I. Bon Voyage
• the bon voyage tradition began when crossing the
ocean became a dangerous undertaking.
• agents wish their departing clients "good trip" by
sending a gift or providing shipboard credit. * for
security reasons, cruise ships do not allow friends and
family on board for parties.
J. Beverages
• stewards serve free welcome drinks.
• the more upscale ships provide champagne without extra
charge.
• coffee and tea are available without charge but anything
ordered from the bar has a charge.
K. Cruise Prices
• Cruise prices are normally stated “per person, double occupancy” (PPDO) and
then offer a third/fourth person rate. The price depends on where the desired
cabin or stateroom is located on the ship.
• The higher the deck the stateroom is located, the higher the price.
• Outside the staterooms which have windows are usually more expensive than
inside or interior staterooms without windows.
• Larger staterooms are usually more expensive than smaller ones.
• Staterooms with balconies cost more than those without.
• Outside staterooms with obstructed views often cost less than those with
unobstructed views.
 Other factors that can affect the price.
- The price is lower when one books six to nine months or more in
advance.
-A last minute sale when the ship is not fully booked also has a lower
price
-Special promotional fares have lower prices such as two-for-one
price, 50% off the second passenger
-Seasonality
-Special alumni or past passenger rat (rates given to people who have
previously sailed on the cruise line) group rates, and whether the
cruise is bought through a travel agency that has special negotiated
prices.
L. Cruise Sales
• The strongest business partnerships have been those enjoyed by
cruise lines and agents. Travel agents accounts for 95% of cruise
sales.
• Cruise lines pay commissions that include transportation,
accommodation, meals, and entertainment unlike a resort were
only the room rate is commissionable
M. Cruise Only Agencies
• Since cruise lines issue their own ship and
air tickets, agents who sell only cruises are
not bothered with the problems of airline
fares and ticketing.
N. Deck Chairs
• In he past the assignment of deck chairs was very
important. To be well placed, passengers bribed deck
stewards. At present, deck chairs are no longer
reserved. Passengers can sit anywhere they want.
O. Life Boat Drill
• Lifeboat drill must take place within 24 hours of embarkation.
• The signal for abandoning the ship consist of six long blast of the
ship’s horn followed by six short blast.
• Upon hearing the signal, every passenger must proceed with a life
jacket to his mustering station, which is gathering place assigned to
the occupants of each cabin.
• Instructions on how to get to the station are posted at the back of the
cabin’s door.
P. Food Service
• The quality of meals and sophistication of the
dining experience varies among ships.
• On many ships, the running and staffing of the
dining room are contracted to an outside catering
organization.
• On large ships, meals are served in the formal
dining room into two to four sittings.
Q. Daily Program
• The ship’s program contains a list of the day’s
entertainment and events, information about the
port of call, as well as suggestions for dress.
• The bulletin is delivered to the passenger’s cabin
every evening with information for the next day
R. Dress
• CRUISE CLOTHES are usually resort
clothes.
• Some ships require more formal dress
than others
S. Port Calls
• Shore excursions are additional expenses
for passengers and additional sources of
revenue for the cruise line.
T. Debarkation
- On the last day at sea, the cruise director gives an informal talk on tipping,
immigration, and debarkation procedures.
- Before bedtime on the night before arrival, baggage must be packed and
placed outside the cabin. The baggage is collected during the night and
taken off on arrival.
- Passengers cannot proceed ashore until all baggage is off and customs
and immigration inspections have been carried out.
- The procedures vary from port to port.
- Passengers collected their baggage on the pier
U. Payment Policies
• When a reservation is made, passengers are given an
option to choose their cabin for a certain amount of
time. Agents must forward the passenger’s deposits
within that time or lose the option. Cruise lines
assign cabin on a first come first served basis. Final
payments are usually due 30 to 60 days before
departure. All fares must be paid together with port
taxes before the cruise line sends out final
documents.
V. Tipping
• Cruise brochure give tipping guides
and on the ship the cruise director
gives a talk on how much and when
to tip.
W. Reading a Deck Plan
• Deck plans are in each brochure.
• Deck plans are like house plan, they contain
symbol which indicate elevators, restaurants,
and discos.
• These symbols alert retailers to the location
passenger may want when choosing a cabin.
X. Sales Education

• Cruise line help sales people learn about their

product through educational, promotional and
sales support activities.
Y. Air Sea Package
• Cruise lines arrange air transportation on
scheduled or chartered airlines.
• One advantage of package flights is that if the
flight is late, the ship may delay sailing to wait
for its arrival or passengers may be flown to
the next port without extra charge.